Piraeus announced it targets 10% RoTE by 2024: Based on -10% NII, +40% fees, +70% other income, -12% cost cutting and -50% impairments vs. 2020 – or a normalized CoR of 70bps. The bank seems comfortable operating at 8%-9% fully loaded CET1 in 2021-2022 in order to get rid of E21bn of NPEs in the…
Piraeus Bank announced the completion of Vega NPE E4.9bn securitization. As was the case with Phoenix, Intrum AB will buy 30% of mezzanine notes, 5% will be retained by the bank (along with 100% of senior notes) and 65% will be distributed to shareholders (we assume via a listing similar to Cairo Mezz). Based on…
Why swapping GGBs? It is the only way to M2M and book the upside (and keep on board) all or part of those GGBs classified as Held to Collect and which are amortized at cost. The alternative would be to sell them (at current – higher- prices) and re-buy them from the market. The swap…
If Greek Banks do not believe in Santa Claus after recent developments, then no one ever will: a) on December 10, the ECB prolonged its targeted lending support (TLTRO III @ -1%) by an additional 12 months while raising the maximum amount banks can borrow (55% from 50%); b) the expanded PEPP will include E31bn…
With this note we present our thoughts on Piraeus Bank Contingent Convertible bond (CoCo) potential conversion into equity. We cannot help feeling there is a lack of a strategy, especially from the state’s side, on how and when to exit its holding in Piraeus Bank and at what price. On a second note, the alleged…